Substitute Senate Bill No. 572
          Substitute Senate Bill No. 572

               PUBLIC ACT NO. 98-36


AN  ACT  CONCERNING  TECHNICAL  CORRECTIONS TO THE
PUBLIC HEALTH STATUTES.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Subsection (b) of section 20-195b
of the general statutes, as amended by  section  1
of   public   act  97-213,  is  repealed  and  the
following is substituted in lieu thereof:
    (b)  No  person  shall use the title "licensed
marital  and  family  therapist"  unless   he   is
licensed  in  accordance  with  the  provisions of
section [19a-195c] 20-195c.
    Sec.  2.  Subsection (f) of section 19a-266 of
the general statutes, as amended by section 54  of
public act 97-8 of the June 18 special session, is
repealed and the following is substituted in  lieu
thereof:
    (f)  The  Commissioner  of Public Health shall
report annually to the joint standing  [committee]
COMMITTEES   of   the   General   Assembly  having
cognizance of matters relating  to  public  health
and  appropriations. The report shall include, but
not be limited to, a description of  the  rate  of
breast  cancer  and  cervical cancer morbidity and
mortality  in  this  state  and  the   extent   of
participation in breast cancer and cervical cancer
screening.
    Sec.  3.  Subsection (a) of section 19a-613 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  The  Office  of  Health Care Access shall
employ the  most  effective  and  practical  means
necessary  to  fulfill the purposes of [19a-610 to
19a-622] THIS CHAPTER, including but  not  limited
to,   performing   the  duties  and  functions  as
enumerated in subsection (b) of this section.
    Sec.  4.  Section  1  of  public act 97-188 is
repealed and the following is substituted in  lieu
thereof:
    For  purposes  of  [this act] SECTIONS 1 TO 9,
INCLUSIVE, OF PUBLIC ACT 97-188:
    (1)  "Nonprofit  hospital"  means  a nonprofit
entity licensed as a hospital pursuant to  chapter
368v  of  the  general  statutes  and  any  entity
affiliated with such a hospital through governance
or  membership,  including,  but not limited to, a
holding company or subsidiary.
    (2)  "Purchaser"  means a person acquiring any
assets  of  a  nonprofit  hospital  [or  nonprofit
health care center] through a transfer.
    (3)   "Person"  means  any  individual,  firm,
partnership,   corporation,   limited    liability
company, association or other entity.
    (4)   "Transfer"   means  to  sell,  transfer,
lease, exchange, option, convey, give or otherwise
dispose  of  or  transfer control over, including,
but not limited to, transfer by way of  merger  or
joint  venture  not  in  the  ordinary  course  of
business.
    (5)  "Control"  has the meaning assigned to it
in section 36b-41 of the general statutes.
    Sec.  5.  Section  4  of  public act 97-188 is
repealed and the following is substituted in  lieu
thereof:
    (a)  The  Attorney  General shall disapprove a
proposed agreement requiring notice under  section
2  of  [this act] PUBLIC ACT 97-188, as not in the
public interest if he determines that one or  more
of   the   following  conditions  exist:  (1)  The
transaction is prohibited by Connecticut statutory
or common law governing nonprofit entities, trusts
or charities; (2) the nonprofit hospital failed to
exercise   due   diligence   in  (A)  deciding  to
transfer,  (B)  selecting   the   purchaser,   (C)
obtaining    a   fairness   evaluation   from   an
independent person expert in such  agreements,  or
(D)  negotiating  the  terms and conditions of the
transfer; (3) the  nonprofit  hospital  failed  to
disclose  any conflict of interest, including, but
not limited to, conflicts of  interest  pertaining
to  board  members,  officers,  key  employees and
experts of the  hospital,  the  purchaser  or  any
other  party to the transaction; (4) the nonprofit
hospital will not receive fair  market  value  for
its   assets,   which,   for   purposes   of  this
subsection, means the most likely price  that  the
assets  would bring in a sale in a competitive and
open market under all conditions  requisite  to  a
fair  sale,  with the buyer and seller each acting
prudently, knowledgeably and  in  their  own  best
interest, and with a reasonable time being allowed
for exposure in the  open  market;  (5)  the  fair
market value of the assets has been manipulated by
any person in a manner that causes  the  value  of
the  assets  to decrease; (6) the financing of the
transaction by the nonprofit hospital  will  place
the nonprofit hospital's assets at an unreasonable
risk; (7)  any  management  contract  contemplated
under  the  transaction is not for reasonable fair
value; (8) a sum equal to the fair market value of
the  nonprofit  hospital's assets (A) is not being
transferred to one or more persons TO BE  selected
by  the  Superior  Court  who  are  not affiliated
through   corporate   structure,   governance   or
membership  with  either the nonprofit hospital or
the purchaser and (B) is not being used for one of
the   following   purposes:  (i)  For  appropriate
charitable health care  purposes  consistent  with
the  nonprofit  [hospital or nonprofit health care
center's] HOSPITAL'S original  purpose,  (ii)  for
the support and promotion of health care generally
in the affected community, or (iii)  with  respect
to  any assets held by the nonprofit hospital that
are subject to a  use  restriction  imposed  by  a
donor, for a purpose consistent with the intent of
said donor; or (9) the nonprofit hospital  or  the
purchaser  has  failed  to  provide  the  Attorney
General with information and  data  sufficient  to
evaluate   the   proposed   agreement  adequately,
provided the Attorney  General  has  notified  the
nonprofit   hospital   or  the  purchaser  of  the
inadequacy of the  information  or  data  and  has
provided  a  reasonable opportunity to remedy such
inadequacy.
    (b)  The  Attorney  General  may,  during  the
course of a  review required by section 3 of [this
act] PUBLIC ACT  97-188:  (1) Issue in writing and
cause to be served upon any person, by subpoena, a
demand that such person appear before him and give
testimony or produce  documents  as to any matters
relevant to the  scope of the review; or (2) issue
written  interrogatories,  to  be  answered  under
oath, as to  any  matters relevant to the scope of
the review and  prescribing  a  return  date  that
would allow a  reasonable  time to respond. If any
person fails to comply with the provisions of this
subsection, the Attorney  General may apply to the
Superior  Court  for   the  judicial  district  of
Hartford-New Britain seeking  enforcement  of  the
subpoena. The Superior  Court  may, upon notice to
such person, issue and cause to be served an order
requiring  compliance.  Service  of  subpoenas  ad
testificandum, subpoenas duces  tecum,  notices of
deposition and written interrogatories as provided
in this subsection may be made by personal service
at the usual  place of abode or by certified mail,
return receipt requested,  addressed to the person
to be served  at  his  principal place of business
[in]  WITHIN  OR   WITHOUT   this   state  or  his
residence.
    (c)  The  Attorney  General  may contract with
experts or consultants to assist in reviewing  the
proposed agreement, including, but not limited to,
assistance in independently determining  the  fair
market  value  of the nonprofit hospital's assets.
The Attorney General shall submit  any  bills  for
such  contracts  to  the  purchaser. The purchaser
shall  pay  such  bills  within  thirty  days   of
receipt.  Such  bills shall not exceed one hundred
fifty thousand dollars.
    Sec.  6. Subsection (c) of section 5 of public
act  97-188  is  repealed  and  the  following  is
substituted in lieu thereof:
    (c)  The  commissioner  may, during the course
of a review required by this section: (1) Issue in
writing and cause to be served upon any person, by
subpoena, a demand that such person appear  before
him  and give testimony or produce documents as to
any matters relevant to the scope of  the  review;
and  (2)  issue  written  interrogatories,  to  be
answered under oath, as to any matters relevant to
the  scope  of the review and prescribing a return
date  that  would  allow  a  reasonable  time   to
respond.  If  any  person fails to comply with the
provisions of this subsection,  the  commissioner,
through  the  Attorney  General,  may apply to the
Superior  Court  for  the  judicial  district   of
Hartford-New  Britain  seeking enforcement of such
subpoena. The Superior Court may, upon  notice  to
such person, issue and cause to be served an order
requiring  compliance.  Service  of  subpoenas  ad
testificandum,  subpoenas  duces tecum, notices of
deposition and written interrogatories as provided
in this subsection may be made by personal service
at the usual place of abode or by certified  mail,
return  receipt requested, addressed to the person
to be served at his principal  place  of  business
[in]   WITHIN   OR   WITHOUT  this  state  or  his
residence.
    Sec.  7.  Section  8  of  public act 97-188 is
repealed and the following is substituted in  lieu
thereof:
    The   Commissioner   of  Public  Health  shall
refuse to issue a license to, or if  issued  shall
suspend  or  revoke  the license of, a [nonprofit]
hospital  if  the  commissioner  finds,  after   a
hearing and opportunity to be heard, that:
    (1)  There  was  a  transaction  described  in
section 2 of [this act] PUBLIC ACT 97-188, without
the  approval  of  the Commissioner of Health Care
Access, if such approval  was  required  by  [this
act]  SECTIONS  1  TO  9, INCLUSIVE, OF PUBLIC ACT
97-188,  AS  AMENDED  BY   THIS   ACT,   and   the
Commissioner  of  Health  Care Access certifies to
the Commissioner of Public  Health  that  approval
was not obtained;
    (2)  There  was  a  transaction  described  in
section 2 of [this act] PUBLIC ACT 97-188, without
the  approval  of  the  Attorney  General, if such
approval was required by  [this  act]  PUBLIC  ACT
97-188,  AS  AMENDED BY THIS ACT, and the Attorney
General certifies to the  Commissioner  of  Public
Health  that  such transaction involved a material
amount  of  the  nonprofit  hospital's  assets  or
operations  or  a change in control of operations;
or
    (3)  The [nonprofit] hospital is not complying
with the terms of an  agreement  approved  by  the
Attorney  General  and  commissioner  pursuant  to
[this act] SECTIONS 1 TO 9, INCLUSIVE,  OF  PUBLIC
ACT 97-188, AS AMENDED BY THIS ACT.

Approved May 19, 1998